Companies

Ola Electric Mobility raises $250 million from SoftBank

Sangeetha Chengappa Bengaluru | Updated on July 02, 2019 Published on July 02, 2019

Ola aims to bring one million EVs on the road by 2021. File photo   -  Reuters

Ola Electric Mobility is valued at an estimated $1 billion

Ola Electric Mobility has raised Rs 1,725 crore or $250 million from SoftBank in a Series B fund raise, as per the company’s RoC filings accessed by business intelligence platform, paper.vc. This makes SoftBank the largest investor in the company with a 23.06 per cent stake.

On July 2, SoftBank’s Cayman Islands entity, SB Topaz (Cayman) Ltd was allotted 4,326 Series B Compulsory Convertible Preference Shares in Ola Electric Mobility at a premium amount of Rs 39,87,608.54 per share for a Rs 10 share.

Now, Ola Electric Mobility is valued at an estimated $1 billion.

Earlier in March this year, Ola Electric Mobility, the e-vehicle solutions arm of global ride-hailing start-up Ola, raised Series A funding of Rs 400 crore or $57 million from Matrix Partners and Tiger Global, among others. Ratan Tata, Chairman Emeritus of Tata Sons also invested in the company as part of its Series A funding.

The company, which is led by Anand Shah and Ankit Jain, was initially established to enable Ola’s electric mobility program which was launched in Nagpur on May 26, 2017 and was inaugurated by Devendra Fadnavis, Chief Minister of Maharashtra and Nitin Gadkari, Union Minister of Road Transport, Highways & Shipping. The program included electric cabs, electric auto rickshaws, electric buses, rooftop solar installations, charging stations and battery swapping experiments.

Last April, Ola embarked on ‘Mission: Electric’ announcing its commitment to place 10,000 E-rickshaws and Electric auto-rickshaws in its service. Ola stated that electrification can improve outcomes for drivers, customers and its business model and aims to bring one million Electric Vehicles (EVs) on the road by 2021. To accomplish this objective, the company said it will work with driver-partners, cities, vehicle manufacturers and battery companies to make sustainable technologies cost-effective and viable in daily mobility.

“We launched India’s first multi-modal electric pilot in Nagpur. After more than 4 million electric kilometres travelled and many lessons learned, we are significantly expanding our commitment to electrify mobility in India” Bhavish Aggarwal, co-founder and Chief Executive Officer (CEO) of Ola had said when the company announced “Mission : Electric” last year.

Published on July 02, 2019
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